Goals and OvjectivesTo approach a new target group by introducing a smaller and less expensive carStrategySatisfy a different market segment to realize the growth strategyImplementation Levers and Strategic LeadershipThe new A- ClassThe Strategic Management ProcessStrategic Analysis emotive in design: low seating, sporty, dynamic, agilepowerful enginesextremely efficient with emissionssafetyreasonable priceWhen: it was unveiled at the 2012 Geneva Motor Show; in Dealership late 2013"We expect a conquest rate of 50% and that's necessary to put a growing strategy in place." (Thomas Weber)1997: Market launch of the A-Class2004: Second generation More than 1,000,000 cars were sold2012: Third generationPrice: 24,335.50 EURO, 36,100 CAD$, ￥2,840,000FocusedCost LeadershipFocused DifferentiationEnvironmentalA 160 CDI BlueEFFICIENCY consumes just 4.5 litres of fuel per 100 kmThe engine switches off automatically when idling9 per cent lower fuel consumption in city trafficThe A-Class is the first compact car to receive an environmental certificateDetailed recycling conceptNo waste policyUse of renewable materialsPolitical & LegalEconomicEmerging markets -> people get wealthier -> can buy a MercedesWages rises -> people have more money -> buy a Mercedes TechnologicalNew innovation by using Apple products integrated in the carFlashing brake lights warn cars travelling behindUltrasound and electric steering help with parkingSocioculturalThe car is made for small familiesIt has four doorsfocused on younger ownersDue to the low price people from the lower middle class can effort to buy a MercedesMercedes as a status symbolIntegrated PositionSouth Africa, India, Europe (Germany), Japan, Korea, Turkey, MexicoThey don`t sell it in the US and CanadaMercedes uses its already existing distribution channelsThey want to approach new costumers (young people, small families) by introducing the A-classHigh start up costs to enter the car manufacturing Therefore low competitionMany suppliers: Break system, electrical system, cooling system, steal supplierssteal from China (low labor and production costs)private consumers, who buys cars for themselvesrental companies, who offer cars for leasingTherefore Mercedes needs to be customer orientated External (PESTEL)